Abstract

This paper investigates heterogeneity in the preferences/WTP (willingness to pay) to preserve marble monuments in Washington, D.C. This is done in the context of three different discrete-choice random-utility models. The main focus is to estimate a mixture model of choices over preservation programs. This model captures the best features of random-parameters models and models that assume preference parameters are deterministic functions of observable characteristics of the individual. The mixture model, and it alone, predicts that increased preservation is a bad for a significant proportion of young, non-Caucasians. That some proportion of the population might consider preservation a bad is a contingency that should be planned for in efforts to value cultural resources. Data and computer code are available athttp://www.colorado.edu/economics/morey/dataset.html.

Morey, E.R. and Rossmann K.G. (2003) “Calculating, with Varying Types of Income Effects, Closed-Form Solutions for the Compensating Variation Associated with a Change in the State of the World”. Discussion paper at http://www.colorado.edu/economics/morey/discuss.html.Google Scholar